Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows: Following Year First Quarter Quarter in Coming Year First Second Third Fourth Sales forecast $460 $334 $351 $399 $399 On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $351. What is the forecast for Paymore's cash receipts in each quarter of the coming year? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Quarter Collections 1 2 3 4

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. The sales forecasts for the next five
quarters are as follows:
Following Year
First Quarter
Quarter in Coming Year
First
Second
Third
Fourth
Sales forecast
$460
$334
$351
$399
$399
On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter.
Assume that sales in the last quarter of the previous year were $351. What is the forecast for Paymore's cash receipts in each quarter
of the coming year? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Quarter
Collections
1
3
4
Transcribed Image Text:Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows: Following Year First Quarter Quarter in Coming Year First Second Third Fourth Sales forecast $460 $334 $351 $399 $399 On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $351. What is the forecast for Paymore's cash receipts in each quarter of the coming year? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Quarter Collections 1 3 4
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